Jessica: Consumer Proposal for a Professional

‘Jessica’ a Case History: Consumer Proposal for a Professional

When she first contacted David Sklar & Associates, Jessica (not her real name) was a single, 28 year old, Toronto professional – whose career and future was threatened by her out-of-control personal finances.

At 24, Jessica had graduated with a Bachelor of Commerce degree. After a six-month job search, she found an entry-level position in her chosen field, paying $22,000 per year. By that time, she had amassed $12,000 in Student Loans, $7,000 in credit card debt, and owed her older brother $11,000.

During her first year of employment, Jessica was able to get an unsecured, $20,000 loan from her bank – which she used to pay off her credit cards and her brother. Unfortunately, she continued to use her credit cards and live beyond her means.

At work, Jessica performed well and her income increased to $25,000 per year. However, her personal finances were a mess – she missed payments and she began to receive collection calls at work. Jessica’s manager spoke to her about the collection calls. He advised her that having out-of-control personal finances would lead others to question her ability to manage business finances.

Desperate to fix the problem, Jessica approached her bank for a consolidation loan but was turned down. When she spoke with the credit card companies, they would not negotiate with her. She called her brother for a loan, but he suggested that she speak with a Licensed Bankruptcy Trustee instead.

A Bankruptcy would make Jessica unemployable in her chosen field. Worried that she might not be able to continue in her profession, but not knowing what else to do, she took her brother’s advice and called David Sklar & Associates Inc (DSAI) for an appointment.

~~ ~~

At her initial consultation with DSAI, Jessica carefully reviewed her financial situation with Estate Administrator, Jason Sklar – the highlights of which were:

Income $25,000
Unsecured Bank Loan $19,000
Credit Card Debt $7,500
Student Loans* $10,500

 

When Jason discussed all of her options, Jessica was relieved to find out that a Consumer Proposal would:

    • stop the collection calls,
    • reduce her debt load, and
    • NOT put her into Bankruptcy.

Working with Jessica, Jason prepared her Consumer Proposal, which DSAI then registered with the Office of the Superintendent of Bankruptcy; presented the terms to her creditors; and received creditor acceptance.

Jessica’s Proposal was to run for 60 months, during which time she would pay $275/month to DSAI, who would distribute the payment in accordance with the Proposal. At the end of the 60 months, if Jessica honoured the agreement, she would be freed of the debts covered by the Proposal (excluding the Student Loans*).

Although Jessica was familiar with business budgets, and had toyed with personal budgets in the past – she discovered that the process of creating a realistic and liveable budget with Jason, enabled her to understand how she could succeed.

It should be noted that attending two financial counselling sessions are a mandatory requirement in the administration of a consumer proposal.

During her initial credit counselling session, Jessica announced that she had become engaged but was worried that her spending issues might mean problems in the future. Jason suggested the couple create an extremely-limited budget for their wedding and stick to it. Past experience had shown Jason that couples who began their marriage in a financially responsible way and continued to keep a family budget, stood a better chance of financial success.

Although Jason did not receive an invitation to Jessica’s very small and budget-wise wedding – he heard all about it at their next credit counselling session. During that meeting, Jessica also shared details on the family budget her and her new husband had set up and were following.

At the end of 60 months, having honoured all the terms of her Proposal, Jessica was released from the unsecured debt covered by the Proposal (except the Student Loans*). She and her husband were then able to move on to the next phase of their marriage – confident in their ability to manage their finances.

 

*Due to the unique legal nature of Student Loans and the specifics of Jessica’s case – while the Student Loans would receive a portion of the $275 monthly payments, at the end of the Proposal, Jessica would still be required to pay back the balance owing on the Student Loans after any dividends they had received during the term.

To protect our client’s privacy, details of this case have been altered.

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
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20:18 16 Jun 22
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15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
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01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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